First State Super has awarded Neuberger Berman a $1.6 billion customised mandate designed to provide a systematic exposure to selected risk premia in emerging market equities.
Eben van Wyk, Portfolio Manager for Systematic Beta at First State Super said: “We worked in partnership with Neuberger Berman through 2015 to build this model, designed to systematically harvest non-market risk premia in emerging market equities with controlled cost. We may eventually move this portfolio in-house alongside other strategies managed internally.”
First State Super is the custodian of an asset pool of over $71bn, including $50 billion in superannuation and an additional $21bn in retirement savings. The fund is building out its internal systematic beta capabilities to capitalise on the continued growth of the fund, and to get broad market exposure in a more effective and economical way.
Lucas Rooney, joint managing director of Neuberger Berman Australia, said: “First State Super liked our approach to factor based equity investing, which shows low correlation to competitors. Research projects in areas where we have strong expertise, that go on to form part of clients’ portfolios, are not uncommon for NB, as is helping clients who are building out internal capability.”
Neuberger Berman’s Head of the Quantitative Investment Group and Director of Research, Wai Lee added: “Original research underlies much of the innovation and investment work done by my team, and finds its way into client portfolios by many different paths. We are very transparent, we publish a lot of our work as technical articles in investment journals, and we get good feedback from clients about that. We are excited to now be starting our next research project with the First State Super team.”
First State Super is one of Australia’s largest profit-for-member superannuation funds. They are the custodians of an asset pool of over $71bn, including $50 billion in superannuation and an additional $21bn in retirement savings. The majority of its 759,000 members work in education, health and service based vocations, including law enforcement, emergency services and other organisations that care for the community. As a profit-for-member fund it are run solely for the benefit of its members. Its purpose is to provide a better future for all Australians.
*As at June 2016
Neuberger Berman, founded in 1939, is a private, independent, employee-owned investment manager. The firm manages equities, fixed income, private equity and hedge fund portfolios for institutions and advisors worldwide. With offices in 19 countries, Neuberger Berman’s team is more than 2,100 professionals and the company was named by Pensions & Investments as a Best Place to Work in Money Management for three consecutive years. Tenured, stable and long-term in focus, the firm fosters an investment culture of fundamental research and independent thinking. It manages US$243 billion in client assets as of March 31, 2016.
Neuberger Berman Australia gained a licence to operate in Australia in April 2011.
For further information please contact:
First State Super
Michael Baldwin, Head of Corporate Affairs
Phone: 0438 007 100
Phone: 03 9649 0912